Liquidity Services (LQDT) investor relations material

Executive summary

• Achieved strong growth in Q2 FY2026, with GMV up 6% to $389.9 million, revenue up 4% to $120.7 million, and GAAP net income up 7% to $7.5 million, driven by broad industry coverage, technology investments, and improved operating leverage.

• Registered buyers increased 8% year-over-year to 6.3 million, with 280,000 completed transactions and 983,000–985,000 auction participants in the quarter.

• The business model leverages online, self-service solutions and diversified revenue streams, supporting high operating leverage and recurring revenue.

• Cash balances reached $204 million with no financial debt, supporting capital allocation to growth initiatives, acquisitions, and share repurchases.

Financial highlights

• Q2 FY2026 GMV was $389.9 million, up 6% year-over-year; revenue was $120.7 million, up 4%; GAAP EPS was $0.23, up 5%; non-GAAP adjusted EPS was $0.35, up 13%; non-GAAP adjusted EBITDA was $16.7 million, up 37%.

• Net income for Q2 FY26 was $7.5 million, up from $7.1 million in Q2 FY25; operating income rose 41.4% to $9.6 million.

• Trailing 12-month net income surpassed $30 million; non-GAAP adjusted EBITDA exceeded $70 million; operating cash flow over $86 million.

• Cash and cash equivalents at quarter-end were $195.3 million, with no outstanding debt.

Outlook and guidance

• Q3 FY2026 GMV expected between $425 million and $465 million; non-GAAP adjusted EBITDA guidance: $17 million–$20 million; GAAP net income: $7 million–$10 million; GAAP EPS: $0.21–$0.30; non-GAAP EPS: $0.30–$0.39.

• Effective tax rate expected to approach mid-30% for Q3 FY2026; capital expenditures to remain at ~$2 million per quarter.

• Macro trends such as e-commerce growth, technology innovation, and sustainability are expected to drive continued demand.